Judge Halts CFPB's Planned Layoffs Affecting 90% Workforce

A federal judge has temporarily blocked the Trump administration's plan to lay off nearly 90% of the Consumer Financial Protection Bureau (CFPB) workforce, citing concerns that the move may violate a prior court order. Judge Amy Berman Jackson emphasized that the administration could not proceed with the reduction in force (RIF) until it conducted individualized assessments to ensure laid-off employees are not necessary for the agency’s statutory duties. The National Treasury Employees Union and other plaintiffs argued that the rapid layoffs ignored this requirement, potentially undermining the bureau’s ability to fulfill its mission. The Trump administration claimed it had complied by reviewing the CFPB’s operations line by line, but critics pointed out the implausibility of such assessments being done in such a short timeframe. The court’s intervention keeps the agency’s staff in place and pauses any further action, including cutting off employee computer access, until a hearing scheduled for April 28. The legal dispute highlights broader tensions over attempts to reshape the CFPB and limit its regulatory authority.